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China Attacks US Chip Handouts While Warning of Market Slowdown

  • Industry association honcho says US Chips Act discriminatory
  • The US and China are locked in a race for chip supremacy

China lashed out at a $52 billion program to expand American chipmaking, saying the landmark blueprint contains elements that violate fair market principles and targets Beijing’s own efforts to build a semiconductor industry.

The US Chips Act, signed into law this month and part of an overall package of incentives worth in excess of $200 billion, is intended to give China’s rivals a helping hand, said Yu Xiekang, vice chairman of the China Semiconductor Industry Association. Parts of it also clearly discriminate against the Asian country, he said without elaborating.